Stock Symbol: SGF: TSX
SASKATOON,
Highlights - Announced the completion of the pre-feasibility study ("PFS") and Reserve Estimate on the Star Diamond Project ("Star") - Announced the completion of the Resource Estimate for the explored portion of the Orion South Kimberlite ("OS") located within the Fort à la Corne Joint Venture ("FALC-JV") - Signed letter agreement ("Letter Agreement") with Saskatchewan Power Corporation ("SaskPower") to commence preliminary engineering studies for a power supply to the Fort à la Corne area - Working capital of $16.3 million at September 30, 2009 - Issued and outstanding shares of 200,154,242 at September 30, 2009 - Closed a private placement for gross proceeds of $27.5 million on October 13, 2009 Overview
During the quarter, the Company announced the positive results of the PFS and Reserve estimate on Star (See SGF News Release
The Company announced that a Letter Agreement has been signed between Shore and SaskPower to provide planning services for a potential electrical power supply to Star (See SGF News Release
FALC-JV Programs
During the quarter, the Company announced the completion of the Mineral Resource estimate for the explored portion of OS, which is located at the southern end of the Orion Kimberlite Cluster within the FALC-JV (See SGF News Release
The OS Mineral Resource estimate proves the potential of the FALC-JV to contain diamondiferous kimberlites of substantial value. This Mineral Resource estimate, when jointly evaluated with the Star Mineral Reserve estimate, has the potential to significantly enhance the economics of a diamond mine within the Fort à la Corne area of central Saskatchewan.
Quarterly Results
For the quarter ended
Year to Date Results
For the nine-month period ended
Selected financial highlights include: As at As at September 30, December 31, Consolidated Balance Sheets 2009 2008 ------------------------------------------------------------------------- Current assets $ 16.9 M $ 35.4 M ------------------------------------------------------------------------- Capital and other assets 228.8 M 231.6 M ------------------------------------------------------------------------- Current liabilities 0.7 M 11.8 M ------------------------------------------------------------------------- Long-term liabilities 1.4 M 1.6 M ------------------------------------------------------------------------- Share capital 769.6 M 772.8 M ------------------------------------------------------------------------- Contributed surplus 26.5 M 25.9 M ------------------------------------------------------------------------- Deficit 552.5 M 545.1 M ------------------------------------------------------------------------- Three months Three months Nine months Nine months Consolidated Ended Ended Ended Ended Statements of September 30, September 30, September 30, September 30, Income 2009 2008 2009 2008 ------------------------------------------------------------------------- Interest and other income $ 0.0 M $ 0.3 M $ 0.1 M $ 1.4 M ------------------------------------------------------------------------- Operating expenses 1.4 M 1.3 M 4.2 M 5.9 M ------------------------------------------------------------------------- Loss for the period before other items (1.4)M (1.0)M (4.1)M (4.5)M ------------------------------------------------------------------------- Write-down of mineral properties 0.0 M 0.0 M (6.3)M 0.0 M ------------------------------------------------------------------------- Change in fair value of investments 0.1 M 0.0 M (0.4)M (2.0)M ------------------------------------------------------------------------- Loss from Wescan Goldfields Inc. 0.0 M (0.1)M 0.0 M (0.2)M ------------------------------------------------------------------------- Future income taxes 0.0 M 0.3 M 3.4 M 0.9 M ------------------------------------------------------------------------- Net and comprehensive loss for the period (1.3)M (0.8)M (7.4)M (5.8)M ------------------------------------------------------------------------- Loss per share (0.01) (0.00) (0.04) (0.03) ------------------------------------------------------------------------- Three months Three months Nine months Nine months Consolidated Ended Ended Ended Ended Statements of September 30, September 30, September 30, September 30, Cash Flows 2009 2008 2009 2008 ------------------------------------------------------------------------- Cash flows from operating activities $ (1.1)M $ (0.5)M $ (3.4)M $ (2.5)M ------------------------------------------------------------------------- Cash flows from investing activities 0.9 M (2.8)M (16.5)M (12.9)M ------------------------------------------------------------------------- Cash flows from financing activities 0.1 M 0.0 M 0.1 M 0.5 M ------------------------------------------------------------------------- Net decrease in cash (0.1)M (3.3)M (19.8)M (14.9)M ------------------------------------------------------------------------- Cash - beginning of period 2.9 M 20.3 M 22.6 M 31.9 M ------------------------------------------------------------------------- Cash - end of period 2.8 M 17.0 M 2.8 M 17.0 M -------------------------------------------------------------------------
Subsequent to the quarter, the Company announced the completion of a private placement of 14.3 million Common Shares and 10.0 million Flow-Through Common Shares of the Company for gross proceeds of
Outlook
As of
A PFS on the combined Star and OS Diamond project is currently underway with results to be released as soon as available.
Technical Information
All technical information in this press release has been prepared under the supervision of
Caution Regarding Forward-looking Statements
This news release may contain forward-looking statements as defined by certain securities laws, including the "safe harbour" provisions of the Ontario Securities Act and the
These forward-looking statements are based on Shore's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific. Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Shore or its joint venture partners, the effects of competition in the markets in which Shore operates, the impact of changes in the laws and regulations regulating mining exploration and development, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in Shore's most recently filed Annual Information Form, annual and interim MD&A, news releases and technical reports. Shore's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to Shore, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Shore does not undertake to update any forward-looking statement that may be made.
For further information: Mr. Kenneth E. MacNeill, Chief Executive Officer and President, Or Mr. Harvey J. Bay, Chief Financial Officer and Chief Operating Officer, 300 - 224 4th Avenue South, Saskatoon, SK, S7K 5M5, PH: (306) 664-2202, FAX: (306) 664-7181, Website: www.shoregold.com
Share this article